Legal Question in Wills and Trusts in Oregon

Re: How Are Mortgage & Equity Handled In The Administration Of An Estate(House)

Your question is missing some information for a fully formed answer, since you do not state how you and your mother held the title of the house. From your question, I am assuming that you and your mother were tenants in common in the house with each owing 50% of it. I am also assuming that the only asset your mother had was her equity in the house.

Any claims paid by your mother's estate will be limited to her assets. However, the total amount of the claims could well exceed all of the assets in her estate. Since the mortgage company is a "secured" lien holder, it is entitled to be paid its mortgage before any "unsecured" interest holders (like the medical bills). If there is not enough equity, then the "unsecured" parties only get part of their bills paid.

The problem you have, is how to pay the claims without selling the house, since you state that you do not want to lose the house.

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